Regional Health Properties, Inc. · OTC:RHEP
Regional Health Properties — Adcare Health Systems — Investor Presentation (February 2016)
17 slides from Regional Health Properties's investor presentation, Feb 9, 2016
Slide 1: Investor Presentation
February 5, 2016 Investor Presentation NYSE MKT: ADK AdCare Health Systems, Inc. ®
Slide 2: Forward-Looking Statements
NYSE MKT: ADK Forward-Looking Statements 2 Statements contained in this presentation that are not historical facts may be forward-looking statements within the meaning of federal law. Such statements can be identified by the use of forward-looking terminology, such as "believes," "expects," "plans,"
Slide 3: Investor Highlights
NYSE MKT: ADK Investor Highlights AdCare Health Systems is a healthcare property holding and leasing company Portfolio of 38 operator and geographically diverse senior care properties, primarily skilled nursing facilities, with a total of 4,081 beds/units Similar to a REIT, portfolio primarily consi
Slide 4: Strategic Transition Substantially Complete
NYSE MKT: ADK Strategic Transition Substantially Complete 4 In July 2014, the Company announced its plan to transition from an owner and operator of skilled nursing facilities to a healthcare property holding and leasing company Since that time, Leadership roles filled with seasoned executives posse
Slide 5: Geographic Diversification
NYSE MKT: ADK OK AR MO OH NC SC AL GA TX Geographic Diversification 5 State # of Facilities Georgia 14 Arkansas 9 Ohio 8 Alabama 2 Oklahoma 2 South Carolina 2 North Carolina 1 Total 38
Slide 6: Operator Diversification
NYSE MKT: ADK Operator Diversification 6 Operator # of Facilities Leased Aria / Skyline (1) 9 Beacon 7 C-Ross Management 7 Wellington 4 New Beginnings 3 Symmetry 3 Southwest LTC 2 Total Leased 35 AdCare Managed 3 Total 38 % of Facilities by Operator Aria / Skyline (1) 24% Beacon 18% C-Ross Mgmt 18%
Slide 7: Typical Lease Structure
NYSE MKT: ADK Typical Lease Structure 7 “Triple-net basis” terms; lessee is typically obligated for all expenses of the property including: Insurance Taxes Facility maintenance Typically 10+ years in duration with renewal options Annual rent escalation clauses between 2 and 3% Cross collateral and c
Slide 8: Capital Structure
NYSE MKT: ADK Capital Structure 8 ($ in thousands) 9/30/2015 Non-convertible debt(1) $125,261 Convertible subordinated debt 9,200 Total Debt $134,461 Preferred stock 50,119 Total Equity / (Deficit) (17,028) Total Capitalization $167,552 (1) Includes $4.0M in liabilities of a disposal group held for
Slide 9: Total Capitalization (at Market Value)
NYSE MKT: ADK Total Capitalization (at Market Value) 9 58% 24% 18% Total debt Preferred stock (at liquidation value) Market value of equity Total Capitalization (at Market Value) ($ in thousands) 9/30/2015 Total Debt(1) $134,461 Preferred stock (at liquidation value) $55,084 Market value of equity(2
Slide 10: Series A Cumulative Redeemable Preferred Stock
NYSE MKT: ADK Series A Cumulative Redeemable Preferred Stock 10 Amount outstanding (9/30/2015) 2,203,360 shares Liquidation Preference $25.00 per share Dividends $2.72 per share (10.875%) Optional redemption After December 1, 2017 at par Special redemption On “Change of Control” and delisting at par
Slide 11: Positioned for Growth
NYSE MKT: ADK Positioned for Growth Diverse pipeline of portfolio expansion opportunities Targeting small to mid-sized transactions Considering individual facilities, primarily with existing operators, as well as small groups of facilities and larger portfolios Broad, national search for potential a
Slide 12: Forward-Looking Guidance
NYSE MKT: ADK Forward-Looking Guidance Revenue between $31.0 and $31.8 million Rent expense of approximately $8.6 million General and administrative expense between $4.0 and $4.3 million, excludes $1.3 million of stock-based compensation Net interest expense between $7.1 and $7.2 million Preferred d
Slide 13: Adjusted FFO per Share Guidance
NYSE MKT: ADK Adjusted FFO per Share Guidance 13 Excludes effects of positive spread investing (1) See the Appendix for the definition of certain non-GAAP financial measures, as well as an important discussion about the use of these measures and their reconciliation to GAAP net loss, the most direct
Slide 14: Illustrative Cap Rate Value Analysis
NYSE MKT: ADK Illustrative Cap Rate Value Analysis 14 ($ in millions) Revenue annual guidance (at midpoint) (1) $31.4 Rent expense annual guidance 8.6 $22.8 Cap Rate 8.0% 8.5% 9.0% 9.5% 10.0% Implied Enterprise Value $285.0 $268.2 $253.3 $240.0 $228.0 Less: Net Debt / Preferred (9/30/2015) (2) $176.
Slide 15: Key Stats
NYSE MKT: ADK Stock Price (2/5/16) $2.08 Avg. Daily Vol. (3 mo.) 76,942 52 Week Low/High $1.85 – $4.50 Shares Outstanding (10/31/15) 19.9M Public Float, est. 16.7M Valuation Measures Market Value of Equity $41.4M Enterprise Value (1) $226.7M Ownership Institutional, est. 22.8% Insider, est. 29.7% Ke
Slide 16: Use of Non-GAAP Financial Information
NYSE MKT: ADK Use of Non-GAAP Financial Information For purposes of the Securities and Exchange Commission's regulations, a non-GAAP financial measure is a numerical measure of a Company's historical or future financial performance, financial position or cash flows that excludes amounts, or is subje
Slide 17: Reconciliation of Net Loss to FFO and Adjusted FFO
NYSE MKT: ADK 17 Reconciliation of Net Loss to FFO and Adjusted FFO (Amounts in 000’s) Condensed consolidated statements of operations data: Net loss (2,800)$ (1,700)$ Discontinued operations - - Net loss from continuing operations (Per GAAP) (2,800) (1,700) Depreciation and amortization 6,500 6,500
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